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Onus on creditors

24 November 2005

Pursuant to last week's article Signing suretyships the recent case of Davids and Another v ABSA Bank Ltd, heard in the Cape High Court, is of interest. It was held that public interest demands that a greater duty is placed on the person who represents a creditor when a suretyship is concluded.

The court found that even though Davids had erred with regard to the contents of a suretyship, the failure of the bank official to explain the nature and content of such a complicated document meant that Davids never intended to bind himself for an unlimited amount.

Article on cliffedekker.co.za

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